Home
/
RELIGION & LIBERTY ONLINE
/
Trump and Clinton are wrong: free trade helps the poor
Trump and Clinton are wrong: free trade helps the poor
Jan 15, 2026 5:08 PM

Imagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. TheAmerican people would immediate reject such harmful economic policies,and politiciansknow they’d be rejectedfor makingsuch inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.

Purchasing power is the number of goods or services that can be purchased with a unit of currency. There are several methods politicians can use to reduce purchasing power, but one of the most subtle mon is to increase barriers to foreign trade. As Nita Ghei says,

The benefits of freer international trade accrue to consumers in theform of increased choice and lower prices. More imports mean more bang for the buck, and that effectively functions like an increase in pay. Consumers either buy imported goods directly, like the finished shirt from Bangladesh, or they can buy an American-made good that includes ponents. When American producers have access to cheaper imports, they can increase production, create jobs and offer goods at a lower price.

There is significant evidence that e Americans benefit substantially from imports, and higher trade barriers will impose a proportionately greater cost on the poor.

The poorest Americans tend to assume (mostly because they’ve been lied to by people that know better) that international trade hurts them. In fact, it is just the opposite, not only for those living in the U.S., but for the poor in almost every part of the world. As The Economist recently noted,

A study by Pablo Fajgelbaum of the University of California, Los Angeles, and Amit Khandelwal, of Columbia University, suggests that in an average country, people on high es would lose 28% of their purchasing power if borders were closed to trade. But the poorest 10% of consumers would lose 63% of their spending power, because they buy relatively more imported goods. The authors find a bias of trade in favour of poorer people in all 40 countries in their study, which included 13 developing countries.

If the lives of the poor are disproportionately improved by freer trade, then why do they so often oppose it? The main reason is because it’s much easier for them to see the negative effects of trade. If the factory you work at making widgets closes and the jobs move overseas, it’s easy to assume that the total economic effect is negative. What is more difficult to see is how many poor people are now able to buy widgets because they are being produced at a lower cost.

That is why protectionism has an innate appeal—it’s easy to see the effects—while free trade seems, well, foreign. Yet what many people don’t realize is that protectionism not only hurts the majority of consumers, it rarely helps the minority of workers it was intended to protect. As Ghei notes,

[P]rotectionist measures, like duties on steel, do little to halt the decline of that industry, which employs 140,000 people now, yet those duties inflict higher costs on steel-consuming industries, which employ over 12 million people.

Free trade is one of the few policies that almost all economists, whether on the left or right, agree is beneficial to the majority of the population. But economically ignorant politicians (see: Clinton and Trump) know that by championing protectionist policies (all while claiming that they are really for “free trade”) they can win the votes of people that don’t know better. That is why those of us who do know better have a duty to the poor to set the record straight. We can’t stop politicians from lying to them. But we can do our best to see that they discover the truth.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
“C’mon, this is Congress we’re talking about…”
Do you care enough to help? Via Hot Air ...
Global Warming Consensus Alert: NBC Pitches In!
In what might be the dumbest attempt yet by any large corporation to appear “green,” NBC decided to turn off the lights on their Sunday Night Football broadcast’s studio set last night. This was apparently an effort to offset the carbon footprint of Matt Lauer in Greenland, which – judging by the size of the huge area lit by the lights they hauled up there – must have been pretty huge. It’s just too bad that NBC didn’t team up...
A Worthy Definition of Freedom
Here’s a definition of freedom worth noting: The Word of God teaches that the Christian is a free man and should “stand in the freedom which Christ has made him free.” What is meant by Christian freedom? What is freedom in general? We answer: it is not the right and the ability to do as one pleases, but the ability to move without constraint in the sphere for which God made us. Freedom therefore is not inconsistent with limitation and...
Sunset Boulevard: A haunting look at spiritual emptiness
In the classic 1950 film Sunset Boulevard, the character of film star Norma Desmond, played by Gloria Swanson, declares, “I am big. It’s the pictures that got small.” I watched Sunset Boulevard for the first time last night, thanks to the mendation from a friend in Virginia. As a fan of classic films, I had high hopes for this film, which was directed by Billy Wilder. Wilder also directed one of my favorite classics films, Stalag 17. William Holden starred...
New Blog of Note: The Immanent Frame
A new blog has been added to our blogroll sidebar (along with a much-needed round of housecleaning on old and out-of-date links). Announcement below: The Social Science Research Council is pleased to announce the launch of The Immanent Frame, a new SSRC blog on secularism, religion, and the public sphere. The blog is opening with a series of posts on Charles Taylor’s A Secular Age, including recent contributions from Robert Bellah, Wendy Brown, Jose Casanova, Elizabeth Shakman Hurd, and Colin...
Misguided Hop Hip Protests: Media Companies Aren’t The Problem
The New York Times reports of a well-intentioned protest by a pastor to protest the ridiculous and dehumanizing lyrics of the type of hip hop shown on networks like BET and MTV. Wearing white T-shirts with red stop signs and chanting “BET does not reflect me, MTV does not reflect me,” protesters have been gathering every Saturday outside the homes of executives in Washington and New York City. The orderly, mostly black crowds are protesting music videos that they say...
Samuelson on ‘The Global Poverty Trap’
Washington Post columnist Robert J. Samuelson discusses a new book on economic history that looks at the poverty problem from the perspective of “nature vs. nurture.” Comes now Gregory Clark, an economist who interestingly takes the side of culture. In an important new book, ” A Farewell to Alms: A Brief Economic History of the World,” Clark suggests that much of the world’s remaining poverty is semi-permanent. Modern technology and management are widely available, but many societies can’t take advantage...
Acton Media Alert
Heads up: Acton Research Fellow Anthony Bradley will be making an appearance today on NPR’s News and Notes program. Braodcast times may vary, so check your local NPR affiliate’s schedule to see if you can catch the show. If you miss it, you can check the show archives right here. Update: Here’s the audio (3 mb mp3 file). Update II: Rome office director Kishore mented on the S-CHIP issue for Vatican Radio today; listen by clicking here (230 kb mp3...
2007 Honor Roll: Reactions Buzzing
Since the 2007 Catholic High School Honor Roll was released, reactions have been buzzing. We’ve been consistently floored by the Honor Roll’s impact. Here’s some highlights: • Huge Roar: “When we announced the award to our students yesterday, a huge roar of spontaneous cheering filled the building. What a glorious day!” Margaret Miller, Holy Cross Academy – Oneida, NY. 4-time honoree. Enrollment Impact: “The Honor Roll is really making an impact for us. This year we have had already over...
This Week is GodblogCon
I’ll be leaving on Wednesday and returning on Saturday to attend GodblogCon 2007 in Las Vegas, held in conjunction with the Blog World & New Media Expo. The Acton Institute is a sponsor of this year’s GodblogCon. I’ll be representing the PowerBlog at the conference, and if you are a reader of this blog and will also be attending, drop me a note in ment box on this post. I’ll also be scouting talent for next year’s Acton University, which...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved